ST Engineering first-half profit up 15% on partial recovery of business segments

Group revenue for the half year was up 2 per cent to $3.65 billion, compared with $3.57 billion a year ago for the same period.
Group revenue for the half year was up 2 per cent to $3.65 billion, compared with $3.57 billion a year ago for the same period.PHOTO: ST ENGINEERING

SINGAPORE (THE BUSINESS TIMES) - Singapore Technologies Engineering (ST Engineering) saw its net profit for the first half of this financial year rise 15 per cent to $296.1 million from $257.4 million the previous year.

In a bourse filing on Thursday morning (Aug 12), the group said its bottom-line improvement largely came from better operating performance of its urban solutions and satellite communications as well as defence and public security segments.

Earnings per share for the six months ended June 30 this year grew 15 per cent to 9.5 cents, from 8.26 cents for the corresponding period last year.

Group revenue for the half year was up 2 per cent to $3.65 billion compared with $3.57 billion a year ago for the same period.

The group's urban solutions and satellite communications segment, along with its defence and public security segment, both reported revenue growth that more than offset the weaker operating performance of the commercial aerospace segment, as well as lower government support received and higher tax expense.

Weaker revenue contributions from commercial aerospace reflected the continued impact of the subdued aviation sector amid Covid-19, said the group. The segment nonetheless posted higher earnings before interest and tax compared with the previous year, due to increased government support received during the period under review.

The board of directors has approved an interim dividend of five cents per share, unchanged from the previous year. It will be paid on Aug 31.

As at end-June, the group's estimated order book value stands at $16.8 billion, of which it expects to deliver some $3.6 billion in the remaining months of the year.

"We remain steadfast in the pursuit of our strategy to emerge stronger as the business environment improves. The diversity of our business portfolio, and our focus on seizing growth opportunities, coupled with productivity and cost management measures, will continue to position us well into the future," said group president and chief executive Vincent Chong.

Shares of ST Engineering traded higher after the earnings report, rising five cents or 1.2 per cent to $4.08 as at 2.18pm on Thursday.